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Downsizing and Retrenchment in Higher Education

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This 4 page paper examines both sides of this issue. Bibliography lists 4 sources.

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4 pages (~225 words per page)

File: RT13_SA921uni.rtf

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do not realize is that educational institutions experience the same problems as other organizations. In fact, many institutions in academia today have been experiencing economic declines (Ashar & Shapiro, 1990). This is a troubling notion, but it is well known. People feel the dilemma when they see their tuition bills and have to either take loans to pay them, or draw from their life savings. While downsizing and retrenchment efforts have been attempted by many universities as a resolution to the problem, it seems as if there is pressure to do so from outside of the scope of academia. Like Corporate America, there is a sense that something needs to be done. Yet, unlike Corporate America, downsizing for educational institutions often results in reduced revenue streams and a reduction in offerings as opposed to what is desired, which is a more efficient organization. II. Downsizing and Retrenchment Ashar, H. & Shapiro (1990) explain that retrenchment as a strategy for organizations of higher learning is new. That is, this is something that the institutions are not used to doing, and so the decisions are hard to make. When there are diminished resources, such decisions are often needed quickly, but these are times that the institutions have to appear as if they are making rational decisions (Ashar & Shapiro, 1990). They must do this in order to reduce criticism and for legitimization (Ashar & Shapiro, 1990). Organizations are generally judged by their efficiency (Ashar & Shapiro, 1990). Authors conclude: "In this light, the formalization of the choice process seems even more plausible. It is not an isolated phenomenon, but rather an attempt to increase the organizations credibility" (Ashar & Shapiro, 1990, p.138). There is much controversy when a university decides to enter retrenchment. Yet, it ...

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